In most cases, student loan repayment begins 6 months after graduation, leaving school, or when a student drops below half-time enrollment. Knowing you will have to pay back the loan makes choosing the best repayment plan essential. There are different repayment plans available for student loans however; the most outstanding one is the Income sensitive repayment plan.
What do Income Sensitive Repayment Plans Offer?
This unique student loan repayment plan works with to your income. Whether you have obtained Federal student loans or private student loans, when grace period is over you will begin repaying your debt. With an income sensitive repayment plan your monthly payment will be lower at the beginning and increase every 2 years. Furthermore, you will pay back the loan based on a percentage of your income. This plans works well for students with bad credit seeking a private loan.
An Income sensitive repayment plan is known to be very flexible. With flexibility comes higher interest and you may find that this repayment plan is not the best for you. To find the best student repayment plan use an online student loan payment calculator. Also try to compare a few student loan offers before choosing any repayment plan.
Changing an Income Sensitive Student Loan Repayment Plan
If you have borrowed a few loans and its time for repayment but, you decided to work with a student loan consolidation program to reduce the headache of managing several monthly payments, you will be able to choose a new repayment plan. Refinancing or consolidating student loan debts is actually applying for a new loan and paying off all the old ones at once. Logically, your initial income sensitive student loan repayment plan will be over with.